This article is from cointelegraph.com.br and the original article can be read here in Portuguese
The president of the Securities and Exchange Commission (CVM), Marcelo Barbosa, recently provided clarification to the Senate about a case that occurred in 2020, informing that the Binance complied with the body’s determination, immediately removing the Binance Futures page, which focused on offering derivatives.
Therefore, the municipality clarifies that it was not necessary to proceed with the sanctioning administrative process. The CVM pointed out that, since then, the existence of products of this type among the assets offered by Binance has not been verified.
The CVM also reaffirmed that the commercial performance of cryptocurrency exchanges, whether local or foreign, is not within the regulatory sphere of the CVM, since crypto-assets do not fit the definition of a security under current legislation.
The statement was sent on May 3, 2022, in response to the Senator Soraya Thronicke and shared with Cointelegraph by a source connected to the case who declined to be identified.
“After the publication of the aforementioned Declaratory Act, the Binance Futures page aimed at Brazilian investors on which such derivatives were offered was removed, and the existence of other securities among the other assets that continued to be offered was not verified. in view of the cessation of the practice that the Declaratory Act 17,961 intended to curb, there was no just cause for the establishment of a sanctioning administrative process by this CVM”, declared the regulator.
The offer of bitcoin futures contracts by Binance led to the filing of an administrative proceeding by the CVM (CVM Process No. 19957.004079/2020-29) in June 2020. At the time, the CVM issued Declaratory Act 17,961 determining the Immediate suspension of Binance’s futures contracts platform in the country, something the exchange accomplished in 2021.
However, despite the CVM’s declaration, Binance cannot yet provide futures contracts to Brazilian investors in view of not having specific authorization from the CVM for this type of investment product.
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